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Essay heading: Canadian Income Tax I
Essay specific features
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Business |
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| Date added: |
December 12, 2000 |
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| No of pages / words: |
2 / 452 |
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0 times |
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Essay content:
Just as one would try to minimize cost of goods sold.
-after tax cashflows/costs show true benefits or true costs.
-the cost of a 10% wage increase/debt interest to a person in a 40% tax bracket (employer, corporation) is 6% after tax (0.1 x 0.4 – 0.1 = 0.06)
-the method of business acquisition: ie buying controlling shares vs acquiring the assets and goodwill alter the amount and timing of taxable income, therefore changing after tax cash flow... displayed 300 characters
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The Fundamental Income Tax Structure and its Complexity
-Taxpayers: only 3 entities subject to tax in Canada: Individuals, Corporations, Trusts
-Types of Income: each taxpayer can earn 5 types of income, 4 which apply to most businesses: Business/Property/Employment/Capital Gains income.
-Business and Investment Structures: there are 6 business structures and only 3 of them are directly taxed, these 6 are: proprietorship, corporation, partnership, limited partnership, joint venture and income trusts... displayed next 300 characters
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